38 of 1980 - A resolution awarding the sale of $7,900,000 Tax Anticipation Notes dated July 1, 1980, providing fo Salt Lake City, Utah
July 15, 1980
The City Council of Salt Lake City, Salt Lake County,
Utah met in regular session on July 15, 1980, at the office of
the City Council in the City and County Building in Salt Lake
City, Utah, legal and timely notice of said meeting having
been given to all members as required by law.
On roll call, the following members, constituting a
quorum, were present:
Ted L. Wilson Mayor
Ronald J. Whitehead Councilmember
Grant Mabey Councilmember
Sidney R. Fonnesbeck Councilmember
Palmer A. DePaulis Councilmember
Alice Shearer Councilmember
Ione M. Davis Councilmember
Edward W. Parker Councilmember
Also present:
Albert E. Haines Director of Finance
& Administrative Services
Roger F. Cutler City Attorney
Mildred V. Higham City Recorder
Stephen D. Page Acting City Treasurer
Absent:
After the conduct of other business, zone M. Davis
stated that the meeting was called pursuant to notice for the
purpose, among other things, of opening sealed bids received
up to 5:00 p.m. , for the purchase of $7,900,000 Tax
Anticipation Notes, dated July 1, 1980 of Salt Lake City,
Salt Lake County, Utah.
The City Recorder then presented the sealed bids for the
purchase of said Tax Anticipation Notes, dated July 1, 1980,
which had been received, which bids we opened and found to be
as follows:
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Interest Premium, Net
Name of Bidder Rate If Any Interest Cost
Morgan Guaranty Trust Co. of
New York - Salomon Brothers 5.37% -0- $423,051.61
Bank of America NT & SA
Bankers Trust Co.
Continental Illinois National Bank
and Trust Co. of New York
Ehrlich-Bober & Co., Inc.
Merrill Lynch White Weld
Capital Markets Group 5.3853% $367.00 $424,260.22
CITIBANK,N.A.
THE FIRST BOSTON CORPORATION 5.48% -0- $431,717.44
Chemical Bank,Mgr.
First National Bank Boston
Smith Barney 5.4810% $1,492.31 $431,800.75
THE FIRST NATIONAL BANK OF
CHICAGO, MGR.
NORTHERN TRUST COMPANY
SHAWMUT BANK OF BOSTON,N.A.
A.G. BECKER, INCORPORATED 5.52% $2,363.42 $434,868.69
Crocker National Bank
By - Linda L. Johnson, Asst.
Vice President 5.63% -0- -0-
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After due deliberation, it was determined that the bid
Of Morgan Guaranty Trust Co. of New York of
Salomon Brothers .
New Yrk City , New York , was the highest
and best bid submitted for the purchase of said Notes, and
which bid reads in full as follows: (See Resolution for copy of Bid)
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BID FORM •
$7,900,000
TAX ANTICIPATION NOTES
SALT LAKE CITY, UTAH
Salt Lake City Council
City and County Building
Room 301
Salt Lake City, Utah 84111
City Council Members:
For $7 903 000 par value Tax Anticipation i;otes, of Salt Lake City, dated
July 1, 1980, denomination7$��5do88a 8c multiples thereof, and maturing on June
30, 1981, we will pay $ plus accrued interest, to the date
of delivery of said Notes to us.
The schedule of maturity, coupon rate, total interest cost, the net inter-
est cost, and the effective rate of interest upon which this bid is based,
with interest computed from July 1 to the maturity date of the Notes are as
follows:
Annual
Maturity Date Amount Coupon Note Years
6-30-81 $7,900,000 5.37% 7,878.056
Total Interest to Maturity $ 423,051.61
Less Premium $ 0
Net Interest Cost $ 423,051.61
Net Effective Interest Rate 5.37
This bid is submitted in accordance with and subject to all provisions
contained in the Official Notice of Sale of these Notes which by this refer-
ence is made a part hereof.
a or certified sum faith check it. the su of S160,000, drawn
upon an incorporated bank or trust company and payable to the order of the
Acting Salt Lake City Treasurer is enclosed to be retained by said City and
applied on the purchase price of these Notes if we are the successful bidder,
otherwise to be returned to us.
We hereby name Morgan Guaranty Trust Company of New York
as paying agent or will so name the optional paying agent within 48 hours af-
ter the award of bid as required in the Official Notice of Sale.
Councilmember Alice Shearer thereupon introduced
the following resolution in writing and moved its adoption:
RESOLUTION
A RESOLUTION AWARDING THE SALE OF THE $7,900,000
TAX ANTICIPATION NOTES DATED JULY 1, 1980,
PROVIDING FOR THEIR ISSUANCE AND DELIVERY AND
SETTING FORTH THE NOTE FORM.
WHEREAS, it is necessary to raise the sum of Seven
Million Nine Hundred Thousand Dollars ($7,900,000) for the
purpose of meeting the current expenses of Salt Lake City for
the fiscal year ending June 30, 1981, until the payment of
taxes and receipt of other revenues for said fiscal year, and
that such sum can be raised without incurring any
indebtedness or liability in excess of the taxes or other
revenues for the current fiscal year or exceeding any limit
of debt imposed by the Constitution and statutes of the State
of Utah; and
WHEREAS, it has been determined to sell said Notes at
this time and the bid of Morgan Guaranty Trust Co. of New York , of
and Salomon Brothers
New York City , New York , for the
purchase of said Notes is the highest and best offer
received, which offer proposes to purchase said Notes at the
price of par and accrued interest to the date of delivery
plus a premium of $ _o_ , said Notes to bear interest
as hereinafter set out;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
SALT LAKE CITY, SALT LAKE COUNTY, STATE OF UTAH AS FOLLOWS:
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Section 1. It is hereby found and declared after due
investigation of the best offer possible to be made for the
purchase of $7,900,000`Tax Anticipation Notes, dated July 1,
1980, of Salt Lake City, Salt Lake County, that
Morgan Guaranty TruFA8iew York , of New York City
and Salomon Brothers
New York , has agreed to submit and has submitted its
offer to purchase the Notes herein authorized at par and
accrued interest to the date of delivery, plus a premium of
$ -o- , bearing interest at the rate hereinafter set
out, that said offer to purchase said Notes is the highest,
best and most advantageous offer received and, in the opinion
of the City Council, the most advantageous offer that might
be received for said Notes, and that said offer, being
satisfactory to the City Council, is hereby accepted. The
City Council agrees to furnish all necessary documents and
information required by bond counsel and also agrees that the
reinvestment of the tax anticipation note proceeds shall not
be invested in such a manner as to create an unlawful
arbitrage.
Section 2. There shall be issued by the City Council of
Salt Lake City, Salt Lake County, Utah, Notes in the amount
of $7,900,000 for the purpose of meeting the current expenses
of Salt Lake City for the fiscal year ending June 30, 1981,
until the payment of taxes and the receipt of other revenues
for said fiscal year. Said Notes shall be known as "Salt Lake
City, Utah Tax Anticipation Notes, dated July 1, 1980", shall
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be numbered 1 to 316 inclusive; shall bear interest at the
rate of 5,37 % per annum from their date until paid, payable
at maturity, shall fall due on June 30, 1981, and shall be
numbered and be in denominations as follows:
NOTE NUMBERED DENOMINATION AMOUNT
1 $25,000 $25,000
2 $25,000 $25,000
3 $25,000 $25,000
316 $25,000 $25,000
Both principal of and interest on said Notes shall be
payable in lawful money of the United States of America at
Morgan Guaranty Trust Co. of New brk , in New York City
New York . Said Notes shall be signed by the Mayor,
attested by the City Recorder and shall have the corporate
seal of the Municipality affixed.
Section 3. Said Notes and the endorsement to appear on
the back thereof shall be in substantially the following
form:
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UNITED STATES OF AMERICA
STATE OF UTAH
COUNTY OF SALT LAKE
No. $
SALT LAKE CITY, UTAH
TAX ANT I C I PAT ION NOTE
$7,900,000
Salt Lake City, Salt Lake County, Utah ("Issuer"),
hereby acknowledges itself to be indebted, and for value
received hereby promises to pay to the bearer hereof, the sum
of
SEVEN MILLION NINE HUNDRED THOUSAND DOLLARS ($7,900,000)
in lawful money of the United States of America, on the 30th
day of June, 1981, at , in
, with interest thereon at the
rate of percent ( %) per annum from
date until paid, payable at maturity.
This Note is one of ( ) notes of
like tenor and date, except as to denomination, numbered from
one (1) to ( ), inclusive, and known as
"SALT LAKE CITY, UTAH, TAX ANTICIPATION NOTES, DATED JULY 1,
1980" for an aggregate amount of Seven Million Nine Hundred
Thousand Dollars ($7,900,000) issued under and pursuant to
Utah Code Annotated, Section 10-8-6 (1953) as amended and
other applicable Utah law.
It is hereby covenanted, certified, recited and declared
that this Note is given in anticipation of the collection of
taxes to be levied for the current fiscal year, in evidence
of money borrowed to meet current expenses of the Issuer
during said current fiscal year until payment of the taxes
for such year, that taxes within the limit provided by law
and sufficient to pay principal of and interest on this Note
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•
as the same falls due and, together with other budgeted
revenues to be received during such fiscal year, sufficient
to pay all budgeted maintenance and operation and other
expenses of said Issuer for such fiscal year have, been or
will be levied in such fiscal year on all taxable property
within the boundaries of the Issuer and that a sufficient
fund has been appropriated for the payment of the principal
of and interest on this Note as the same shall fall due.
It is hereby further certified, recited, and declared
that the aggregate indebtedness incurred by said Issuer for
this current fiscal year, including this and other Notes, is
not in excess of the total of the Issuer's taxes levied, or to
be levied, and to be collected for the current fiscal year,
and that said indebtedness was and is contracted for the
purpose for which said taxes are levied.
It is further certified, recited and declared that all
acts, conditions and things essential to the validity of this
Note exist, have happened and have been done, and that every
requirement of law affecting the issue thereof has been duly
complied with, and that this Note is within every debt and
other limit prescribed by the Constitution and Laws of the
State of Utah. The full faith, credit, resources and all
taxable property within the limits of the Issuer are hereby
irrevocably pledged to the levy of taxes for the fiscal year
in which this Note is issued and for the collection and
proper allocation of such taxes and other revenues provided
for such fiscal year to the prompt payment of principal and
interest on this Note and the issue of which it is one,
according to its terms.
IN WITNESS WHEREOF, the Issuer has executed this Note by
causing it to be signed by its Mayor and its City Recorder,
and the seal of the Issuer to be affixed hereto as of the day
of July, 1980.
/s/ (Do not sign) /s/ (Do not sign)
City Recorder Mayor
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There shall be endorsed on each of said Notes a
certificate reading as follows:
CERTIFICATE OF THE DIRECTOR OF FINANCE
AND ADMINISTRATIVE SERVICES
I hereby certify that the within Note is issued in
accordance with law and is within the debt limit of Salt
Lake City, Salt Lake County, permitted by the
Constitution and Laws of the State of Utah.
/s/ (Do not sign)
Director of Finance and
Administrative Services
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Section 4. All the covenants, statements,
representations, agreements and promises contained in said
Notes, and all recitals and representations in this
resolution, are hereby adopted as the covenants, statements,
agreements and promises of Salt Lake City, Salt Lake County,
Utah.
Section 5. The proceeds derived from the sale of said
Notes shall be used solely for the purpose of meeting the
current expenses of Salt Lake City for the fiscal year ending
June 30, 1981, until the payment of taxes and the receipt of
other revenues for said fiscal year, but the holders of said
Notes shall be in no wise responsible for the application of
the proceeds thereof by said Municipality or any of its
officers.
Section 6. The City Council shall levy in the fiscal
year ending June 30, 1981, a sufficient tax or provide for
the collection of sufficient revenues other than taxes to pay
the principal and interest on said Notes as the same fall due
and such Notes are issued in anticipation of the payment of
such taxes and collection of such revenues for the fiscal
year ending June 30, 1981.
Section 7. There is hereby irrevocably appropriated
from the first collection of taxes and other revenues a
sufficient fund to pay the principal and interest on said
Notes as the same shall fall due, and all expenses in
connection therewith, and all collection and other charges
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incident thereto or connected therewith shall be paid by Salt
Lake City.
Section 8. The offer of said Morgan Guaranty Trust Co. of
New York - Salomon Brothers
is hereby accepted and the Mayor and the City Recorder are
hereby authorized and directed to sign, execute, deliver and
issue said Notes on behalf of the City Council to
Morgan Guaranty Trust Co. of New York upon receipt of the purchase
Salomon Brothers
price therefor, and the City Recorder is hereby authorized
and directed to affix the seal of said Municipality thereto,
and the Director of Finance and Administrative Services is
hereby authorized to place upon said Notes his certificate in
the manner and form hereinbefore set forth. The acts of the
Mayor, City Recorder and Director of Finance and
Administrative Services in signing, executing, delivering,
and issuing said Notes shall be the acts and deeds of the
Municipality.
Section 9. The proceeds derived from the sale of said
Notes shall not be reinvested in securities or obligations
yielding interest at a materially higher rate than said
Notes, except for a temporary period, and said proceeds shall
not be otherwise used so as to render said Notes "arbitrage
bonds" under Section 103(d) of the Internal Revenue Code and
regulations issued or promulgated thereunder.
Section 10. All resolutions and orders or parts thereof
in conflict with the provisions hereof are to the extent of
such conflict hereby repealed.
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Adopted and approved this 15th day of July, 1980.
Mayor
ATTEST:
Aditti
City Reco r
( SEAL )
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After due consideration of said resolution by the City
Council the foregoing resolution was unanimously carried by
the affirmative vote of all members present, the vote being
as follows:
AYE: Ronald J. Whitehead
Grant Mabey
Sidney R. Fonnesbeck
Palmer A. DePaulis
Alice Shearer
Ione M. Davis
Edward W. Parker
NAY: None
Mayor
ATTEST:
City Reco r
( SEAL )
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STATE OF UTAH
) ss.
COUNTY OF SALT LAKE )
I, Mildred V. Higham, the duly chosen, qualified and
acting City Recorder of Salt Lake City, Utah, do hereby
certify that the foregoing is a full, true and correct copy
of the minutes of a regular meeting of the City Council held
at the office of said City Council in Salt Lake City, Utah, on
July 15, 1980, as recorded in the regular official book of
minutes of the proceedings of said City Council kept in my
office, that all Councilmembers were given due, legal and
timely notice of said meeting, that the meeting therein shown
was in all respects called, held and conducted in accordance
with law and in full conformity therewith, and that the
persons therein named were present at said meeting as therein
shown.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the official seal of said Municipality this 15th day
of July, 1980.
City Recorder
( SEAL )
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STATE OF UTAH ) CERTIFICATE OF COMPLIANCE
ss. WITH OPEN MEETING LAW
COUNTY OF SALT LAKE )
I, Mildred V. Higham, the duly qualified and acting City
Recorder of Salt Lake City, Salt Lake County, Utah, do hereby
certify that on the 14th day of July, 1980, pursuant to Utah
Code Annotated Section 52-4-6 (1953), as amended, there was
posted (at least 24 hours prior to the meeting time) at the
regular meeting place of the City Council written notice of the
regular meeting of the Salt Lake City Council held on July 15,
1980 at said regular meeting place. I further certify that
there was delivered to the news media, at least 24 hours prior
to said meeting, a copy of said Notice of Regular Meeting.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the official seal of said Municipality this 15th day
of July, 1980.
,,,,44.4__.„
City Recorder /�
( SEAL ) U
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NOTICE OF ADDENDUM TO AGENDA
TO THE REGULAR MEETING OF
THE CITY COUNCIL OF SALT LAKE CITY,UTAH
•
PUBLIC NOTICE is hereby given'that the regular meting of the City Council
of Salt Lake City,Utah, to be held in Room 301,City and County Building,Salt Lake
City,Utah, commencing at 5:00 p.m.,on Tuesday,July 15,1980 shall Include
consideration of a the following additional matters.
RESOLUTION-Awarding the sale of$1,900,000 Salt Lake City Tax Anticipation
Notes,Dated July 1, 1980,providing for their Issuance and delivery
and setting for the note form.
•
DATED July 14, 1980
•BY: i/i.G.fh/1'y Her
City Renoa
STATE OF UTAH $
ea.
COUNTY OF SALT LAKE)
0^ inty IL 19RO , I personally posted copies of the
foregoing notice In conspicuous view, at the following times and locations within
the Clay and County Building, Salt Lake City,Utah:
1. At 3:30 o_m. , in Room 200 (Salt Lake City Recorder's Office)
2.At 3.45 o m , In the newsroom in Room 301.
1/1l;
City Rec der
Subscribed and sworn to before me this 14th day of July, 1980
—n'u.4e/LOg a,P(cl uoru r}r.
Notary Public residing In
Salt lake City,Utah
My Commission expires:
/-R 83
Resolution No.
• By CITY COUNCIL
Awarding the sale of $7,900,000 Tax
Anticipation Notes dated July 1,
1980, providing for their issuance
and delivery and setting forth the
Note Form. (Morgan Guaranty Trust
Co. of New York & Salomon Brothers -
awarded the bid)
✓ car, REG to y+